Montenegro’s Tax Administration (TA) has submitted its first list of more than 2,000 inactive business entities owned by foreign nationals to the Police Directorate, the institution confirmed in responses to RTCG.
The move follows recent conclusions of the National Security Council, which noted increasing violations of tax regulations by companies and individuals of foreign origin. When asked for detailed data on such cases, the Tax Administration explained that inspections are conducted across all taxpayers, without separating results by ownership structure.
According to the TA, from early May to the end of August 2025, inspectors carried out 3,123 compliance checks, identifying irregularities in 567 cases. As a result, authorities issued 752 misdemeanor orders totaling €2.3 million. Of this amount, €1.9 million was formally charged and €881,200 (47.4%) collected—mainly from taxpayers who paid reduced penalties within the legal eight-day deadline. Inspectors also imposed 26 temporary bans on business operations.
During the first nine months of the year, the TA conducted 406 full-scope audits, uncovering €33 million in tax corrections. Targeted inspections focused on foreign-owned entities revealed recurring offenses: late filing of tax returns, failure to pay tax obligations, issuing fiscal receipts without reporting revenue, and other violations. These findings led to multiple criminal complaints for suspected long-term tax evasion.
In line with National Security Council directives, the Tax Administration will continue regularly forwarding lists of inactive and illiquid companies owned by foreign nationals to the police, which may initiate procedures to revoke temporary residence permits where legal grounds exist.
Digital transformation underway
The TA highlighted ongoing reforms carried out in cooperation with the World Bank, centered on the development of the Integrated Revenue Management System (IRMS). The new system will replace all existing platforms, integrate taxpayer registration, calculation, payment, compliance monitoring, and enforcement. IRMS is expected to go live on January 1, 2026, with additional digital services to follow in the second phase.
Combined with the electronic fiscalization system introduced in 2021, IRMS will form the backbone of a modern, transparent tax administration capable of real-time monitoring and risk assessment.
Revenue results for 2025
The Tax Administration reported €1.4 billion in gross revenue collected in the first ten months of 2025—€17 million more than in the same period last year, achieving 99.6% of the planned target.
Key figures include:
- VAT revenue: €495 million (+€92 million or +23% y/y)
- Corporate income tax: €227 million (+€21 million or +10% y/y)
- Social contributions: €339 million (32% lower y/y due to reduced PIO rates effective October 2024)
In October alone, gross collection amounted to €136 million, an 8% increase compared to October 2024 and 5% above plan. VAT collection in October reached €61 million, up 30% year-on-year, while corporate tax revenue surged 150% y/y.
The Tax Administration emphasized that these results confirm steady progress in reducing the informal economy, improving tax discipline, and strengthening cooperation with taxpayers. It pledged to continue modernization efforts aimed at increasing transparency and safeguarding Montenegro’s public finances.
